GLOBAL MARKETS DJIA 33876.97 586.89 1.76% Nasdaq 14141.48 111.10 0.79% S&P 500 4224.79 58.34 1.40% FTSE 100 7062.29 44.82 0.64% Nikkei Stock 28716.48 705.55 2.52% Hang Seng 28443.42 -45.58 -0.16% Kospi 3257.80 17.01 0.52% SGX Nifty* 15804.00 75.5 0.48% *June contract USD/JPY 110.44-45 +0.11% Range 110.47 110.22 EUR/USD 1.1906-09 -0.10% Range 1.1923 1.1901 CBOT Wheat July $6.614 per bushel Spot Gold $1,783.85 0.1% Nymex Crude (NY) $73.59 $1.95 U.S. STOCKS
U.S. stocks rallied Monday, lifting the Dow Jones Industrial Average by more than 550 points, as shares of everything from banks to manufacturers climbed.
Monday's moves marked a comeback for stocks after investor anxieties about the Federal Reserve's path for monetary policy sent the Dow on its biggest decline since late October.
The Dow industrials added 586.89 points, or 1.8%, to 33876.97. The S&P 500 rose 58.34 points, or 1.4%, to 4224.79 and the Nasdaq Composite climbed 111.10 points, or 0.8%, to 14141.48.
Stocks rose broadly Monday, with all 11 sectors of the S&P 500 finishing higher.
ASIAN STOCKS
Japanese stocks were broadly higher in early trade, rebounding from Monday's selloff, as improved progress with Japan's Covid-19 vaccination campaign boosted the prospects for economic recovery. Among the biggest movers, Suzuki Motor rose 4.8%, Daiwa House Industry added 4.1% and Chugai Pharmaceutical climbed 4.1%. Investors were focusing on Fed officials' comments on the rate outlook and the pace of vaccination in Japan. The Nikkei Stock Average was up 2.2% at 28629.09.
South Korea's benchmark Kospi was 0.7% higher at 3262.28 in early trade, led by steel and shipbuilding stocks. Expectations for solid 2Q corporate earnings amid brisk exports and a rally overnight in the U.S. stocks on subsiding worries about the Fed's sooner-than-expected rate increases were supporting investor sentiment, Kiwoom Securities said. Steelmakers Posco and Hyundai Steel rose 3.0% and 4.7%, respectively. Shipbuilders were extending gains on recent contract wins, with Daewoo Shipbuilding & Marine Engineering up 2.1%. But pharmaceutical stocks were lower with Celltrion Inc. down 1.3%. Index heavyweight Samsung Electronics gained 0.3%.
Hong Kong shares gave up opening gains, despite a strong rebound on Wall Street overnight. The Hang Seng Index fell 0.3% to 28413.12. Commodities-related stocks led gains, while some tech companies were lower. PetroChina was the top performer among index constituents, adding 5.6%. Hong Kong & China Gas Co., Sinopec and Cnooc advanced between 2.5% and 4.3%. Auto maker BYD Co. was the biggest laggard with a 3.5% decline. Meituan lost 2.4%, while Tencent and Alibaba Group each fell 1.6%. Markets still faced uncertainties over the Fed, as officials were divided on the pace of normalizing monetary policy, KGI Securities said, adding that Hong Kong's IPO fundraising activities will absorb some market liquidity.
Chinese stocks were mixed in early trade, as gains in banks and oil shares were offset by losses in the information technology sector. The Shanghai Composite Index rose 0.6% to 3549.08, the Shenzhen Composite Index added 0.2% and the ChiNext Price Index fell 0.6%. China Merchants Bank gained 2.4% and China CITIC Bank rose 2.6%. PetroChina was 4.3% higher and China Oilfield Services added 3.7%. Among IT stocks, iFlytek lost 1.2% and Shanghai Baosight Software dropped 1.7%. Market leaders in the new-energy sector also fell. Battery maker CATL dropped 1.1% and LONGi Green Technology lost 1.6%.
FOREX
The U.S. dollar weakened 0.5% against the euro and was slightly stronger against the yen. The WSJ Dollar Index sank 0.4% following its best week since September. "The Fed's hawkish pivot is a bullish watershed for USD after an indecisive 1H," JPMorgan said. "The Fed has removed the assurance of multi-year policy inaction that has been pivotal to the market's USD-bearish conviction ever since the switch to average inflation targeting.... The shift in the Fed's reaction function is most clearly bullish for USD vs. low-yielding reserve FX, whose monetary policy is firmly anchored by historically weak inflation," it said.
METALS
Gold was higher in early Asian trade. Investors were likely to focus on U.S. Fed chairman Jerome Powell's testimony to a House Subcommittee which could shed more light on the Fed's stance on inflation and rate increases, OCBC said. It expected gold to trade within a broad range of $1,750/oz to $1,850/oz for now. Spot gold was recently up 0.1% at $1,783.85/oz.
OIL SUMMARY
Oil was mixed in early Asian trade, after rising sharply overnight on a weaker U.S. dollar and improved risk appetite. Oil was likely to remain resilient as additional Iranian crude oil supply could take longer to materialize, after a sixth round of talks to revive a nuclear deal with Iran ended without an agreement, CBA said. Front-month WTI crude oil futures were 0.1% lower at $73.60/bbl while Brent crude oil futures gained 0.1% to $74.99/bbl.
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(END) Dow Jones Newswires
06-21-21 2315ET
